BILL NUMBER: AB 883	CHAPTERED  10/10/99

	CHAPTER   625
	FILED WITH SECRETARY OF STATE   OCTOBER 10, 1999
	APPROVED BY GOVERNOR   OCTOBER 5, 1999
	PASSED THE ASSEMBLY   SEPTEMBER 9, 1999
	PASSED THE SENATE   SEPTEMBER 7, 1999
	AMENDED IN SENATE   SEPTEMBER 2, 1999
	AMENDED IN SENATE   JULY 2, 1999
	AMENDED IN ASSEMBLY   APRIL 5, 1999

INTRODUCED BY   Committee on Rules (Hertzberg (Chair), Calderon,
Corbett, Granlund, Washington, and Wiggins)
   (Coauthor:  Assembly Member Steinberg)

                        FEBRUARY 25, 1999

   An act to amend Section 8169.5 of the Government Code, relating to
state property, and declaring the urgency thereof, to take effect
immediately.



	LEGISLATIVE COUNSEL'S DIGEST


   AB 883, Committee on Rules.  State property:  design-build.
   Existing law authorizes the Director of General Services to
purchase, exchange, or otherwise acquire real property and construct
facilities within the jurisdiction of the Capitol Area Plan in
Sacramento for use by the State Department of Education, the State
Department of Health Services, and the Department of General Services
as anchor tenants on specific blocks within the Capitol area.  The
Department of General Services is authorized to acquire the
facilities on a design-build basis, and, if it does so, to submit
specified information prior to entering into an agreement.
   This bill would further require the department, if it proceeds to
acquire the facilities on a design-build basis, to provide the
Legislature, beginning on July 1, 1999, and every 3 months
thereafter, with a status report on the design-build approach and a
final report when the facilities are completed.  The bill would also
provide that project costs for these facilities may include payments
for actual moving and related expenses for the Francis House in
Sacramento in an amount that may not exceed $120,000.
  The bill would declare that it is to take effect immediately as an
urgency statute.


THE PEOPLE OF THE STATE OF CALIFORNIA DO ENACT AS FOLLOWS:


  SECTION 1.  Section 8169.5 of the Government Code is amended to
read:
   8169.5.  (a) In furtherance of the Capitol Area Plan, the
objectives of Resolution Chapter 131 of the Statutes of 1991, and the
legislative findings and declarations contained in Chapter 193 of
the Statutes of 1996, relative to the findings by the Urban Land
Institute, the director may purchase, exchange, or otherwise acquire
real property and construct facilities, including any improvements,
betterments, and related facilities, within the jurisdiction of the
Capitol Area Plan in the City of Sacramento pursuant to this section.
  The total authorized scope of the project shall consist of up to
approximately 1,470,200 gross square feet of office space and
approximately 742,625 gross square feet of parking structures for use
by the State Department of Education, the State Department of Health
Services, and the Department of General Services as anchor tenants
on blocks 171, 172, 173, 174, and 225, along with related additional
parking on block 224, within the Capitol area.  The acquisition and
construction authorized pursuant to this section may not cause the
displacement of any state or legislative employee parking spaces in
the blocks specified in this subdivision unless the Department of
General Services makes available existing state-owned parking spaces,
acquires parking spaces, or constructs replacement parking that
results in the affected employees' parking spaces being located at a
reasonable distance from their place of employment.
   (b) Subject to paragraphs (2) and (3) of subdivision (c), the
department may contract for the lease, lease-purchase, lease with an
option to purchase, acquisition, design, design-build, construction,
construction management, and other services related to the design and
construction of the office and parking facilities authorized to be
acquired pursuant to subdivision (a).
   (c) (1) The State Public Works Board may issue revenue bonds,
negotiable notes, or negotiable bond anticipation notes pursuant to
Chapter 5 (commencing with Section 15830) of Part 10b of Division 3
to finance all costs associated with acquisition, design, and
construction of office and parking facilities for the purposes of
this section.  The State Public Works Board and the department may
borrow funds for project costs from the Pooled Money Investment
Account pursuant to Sections 16312 and 16313.  In the event the bonds
authorized by the project are not sold, the State Department of
Education, the State Department of Health Services, and the
Department of General Services, as determined by the Department of
Finance, shall commit a sufficient amount of their support
appropriations to repay any loans made for the project from the
Pooled Money Investment Account.  It is the intent of the Legislature
that this commitment shall be included in future Budget Acts until
all outstanding loans from the Pooled Money Investment Account are
repaid either through the proceeds from the sale of bonds or from an
appropriation.
   (2) (A) If the department proposes to acquire the facilities on a
design-build basis, prior to the department entering into an
agreement pursuant to subdivision (b) to design and build the
facilities on blocks 171, 172, 173, 174, and 225, as specified in
subdivision (a), the department shall submit to the Legislature a
copy of all documents that shall be the basis upon which bids will be
solicited and awarded to design and build the facilities.  The
documents shall include the following:
   (i) The request for qualifications.
   (ii) Site development guidelines.
   (iii) Architectural and all system design requirements for the
facilities.
   (iv) Notwithstanding any other provision of law, the recommended
specific criteria and process by which the contractor shall be
selected.
   (v) The performance criteria and standards for the architecture
and all components and systems of the facilities.
   (B) The information in the documents shall be provided in at least
as much detail as was prepared for the San Francisco Civic Center
Complex project and shall cover the quality of materials, equipment,
and workmanship to be used in the facilities.  These documents shall
also include a detailed and specific space program for the facilities
that identifies the specific spatial needs of the state agencies.
   (C) If the department proceeds to acquire the facilities on a
design-build basis, in addition to any other requirements imposed
pursuant to this section, notwithstanding Section 7550.5, the
department shall provide the Legislature, beginning on July 1, 1999,
and every three months thereafter until the facilities are completed,
with a status report that includes information regarding any
benefits that the state may have realized from use of the
design-build approach, any problems that have been encountered from
the use of a design-build approach, and lessons learned that may be
applied to a future project.  The department shall issue a final
report when the facilities are completed.
   (D) If the department proposes to contract for construction
separate from design, the department shall, prior to commencing work
on working drawings for the facilities on blocks 171, 172, 173, 174,
and 225, submit to the Legislature a copy of the preliminary plans
for the facilities and a detailed and specific space program for the
facilities that identifies the specific spatial needs of the state
agencies.
   (E) Regardless of how the department proposes to acquire the
facilities, the department also shall submit all of the following
information, which may be included in the bid documents:
   (i) A final estimated cost for design, construction, and other
costs.
   (ii) How the department would manage the contracts entered into
for this project to ensure compliance with contract requirements and
to ensure that the state receives the highest level of quality
workmanship and materials for the funds spent on the project.
   (3) Except for the reports specified in subparagraph (C) of
paragraph (2), the department shall submit to the Legislature the
information required to be submitted pursuant to paragraphs (2) and
(6) on or before December 1, 1998.  Except for those contracts and
agreements necessary to prepare the information required by
paragraphs (2) and (6), the department shall not solicit bids to
enter into any agreement to design and build or otherwise acquire the
facilities or commence work on working drawings on block 171, 172,
173, 174, or 225 sooner than the later of April 1, 1999, or 120 days
after the department submits to the Legislature the information
required to be submitted pursuant to paragraphs (2) and (6).  The
Legislative Analyst shall evaluate the information submitted to the
Legislature and shall prepare a report to the Joint Committee on
Rules within 60 days of receiving the documents submitted to the
Legislature.  It is the intent of the Legislature that the Joint
Committee on Rules meet prior to the date the department is
authorized to solicit bids to design and build or otherwise acquire
the facilities or commence work on working drawings for the purposes
of discussing the report from the Legislative Analyst and adopting a
report with any recommendations to the department on changes to the
site design criteria, performance criteria, and specifications and
specific criteria for determining the winning bidder.  If the Joint
Committee on Rules adopts a report prior to the date the department
is authorized to solicit bids to design and build or otherwise
acquire the facilities or commence work on working drawings, the
department may solicit the bids or commence the work when the report
is adopted by the Joint Committee on Rules.  The Senate Committee on
Rules and the Speaker of the Assembly may designate members of their
respective houses to monitor the progress of the preparation of the
documents to be submitted pursuant to paragraph (2).  The department
shall prepare periodic progress reports and meet with the designated
members or their representatives, as necessary, while preparing the
documents.
   (4) The amount of revenue bonds, negotiable notes, or negotiable
bond anticipation notes to be sold may equal, but shall not exceed,
the cost of planning, preliminary plans, working drawings,
construction, construction management and supervision, other costs
relating to the design and construction of the facilities, and any
additional sums necessary to pay interim and permanent financing
costs.  The additional amount may include interest and a reasonable
required reserve fund.
   (5) Authorized costs of the facilities for preliminary plans,
working drawings, construction, and other costs shall not exceed
three hundred ninety-two million dollars ($392,000,000).
Notwithstanding Section 13332.11, the State Public Works Board may
authorize the augmentation of the amount authorized under this
paragraph by up to 10 percent of the amount authorized.
   (6) The net present value of the cost to acquire and operate the
facilities authorized by subdivision (a) may not exceed the net
present value of the cost to lease and operate an equivalent amount
of comparable office space over the same time period.  The department
shall perform this analysis and shall obtain interest rates,
discount rates, and Consumer Price Index figures from the Treasurer
and submit its analysis with the documents submitted pursuant to
paragraph (2) of subdivision (c).  For purposes of this analysis, the
department shall compare the cost of acquiring and operating the
proposed facilities with the avoided cost of leasing and operating an
equivalent amount of comparable office space that will no longer
need to be leased because either (A) agencies will no longer occupy
currently leased facilities when they occupy the proposed facilities,
or (B) agencies will no longer occupy currently leased facilities
when they occupy state-owned space being vacated by state agencies
occupying the proposed facilities.  The analysis shall also include
the cost of any unique improvement associated with the moving of an
agency into any state-owned space that would be vacated by agencies
moving into the proposed facilities.  However, these costs shall not
include the cost of renovating or modernizing vacated state-owned
space that is necessary to accommodate state agencies in general
purpose office space.  This paragraph shall not be construed as
authorizing any renovation of state-owned space.
   (d) The director may execute and deliver a contract with the State
Public Works Board for the lease of the facilities described in this
section that are financed with the proceeds of the board's bonds,
notes, or bond anticipation notes issued in accordance with this
section.
  SEC. 2.  Expenses for the project authorized pursuant to Section
8169.5 of the Government Code may include payments for actual moving
and related expenses, including obtaining new facilities, for the
Francis House in Sacramento, an organization whose primary activities
concern counseling and assisting low-income residents of the midtown
region in the areas of employment and housing, in an amount that may
not exceed one hundred twenty thousand dollars ($120,000).  The
Department of General Services shall allocate these funds, upon
application by the Francis House, using criteria adopted by the
department.  These criteria shall be exempt from Chapter 3.5
(commencing with Section 11340) of Part 1 of Division 3 of Title 2 of
the Government Code.  The payments authorized by this section shall
not create any rights to relocation payments pursuant to Chapter 16
(commencing with Section 7260) of Division 7 of Title 1 of the
Government Code.
  SEC. 3.  This act is an urgency statute necessary for the immediate
preservation of the public peace, health, or safety within the
meaning of Article IV of the Constitution and shall go into immediate
effect.  The facts constituting the necessity are:
   In order to ensure orderly and responsible acquisition of state
facilities within the Capitol Area Plan, it is necessary that this
act take effect immediately.
